Netflix password crackdown:
Have you been sharing your Netflix password with others who are not family members?
Then my friend, your days of sharing your Netflix password are maybe numbered.
Netflix said on Tuesday that it will roll out plans to “monetize” account sharing internationally early next year, which signals that netflix password sharing will cost you in 2023
The technique is similar to tests Netflix has been doing in Latin America, where members were compelled to pay an additional $2.99 for each additional home-streaming Netflix subscription.
How it will work: By creating “sub accounts” or “extra members,” Netflix will make it easier for you to share your Netflix account with relatives or friends who do not reside with you. Each subaccount would have its own login, profile, and tailored suggestions. Netflix password sharing will now come with a fees.
This week, the company announced that you would be able to move your profiles to new accounts, making it easier for users who share accounts to have their own.
“We’ve landed on a thoughtful approach to monetize account sharing and we’ll begin rolling this out more broadly starting in early 2023,” Netflix wrote in a letter to shareholders. “After listening to consumer feedback, we are going to offer the ability for borrowers to transfer their Netflix profile into their own account, and for sharers to manage their devices more easily and to create subaccounts (“extra member”), if they want to pay for family or friends.”
What happened in Latin America?
The new prices(additional fee) in Latin America provoked uproar, with some threatening to abandon the platform.
Thousands of Netflix members in Latin America discovered that they had been locked out of their accounts on their smart TVs in late August. Those customers were required to pay an extra price after signing back in. Netflix announced the password crackdown in Argentina, El Salvador, Guatemala, Honduras, and the Dominican Republic the prior month, as the second phase of a larger deployment.
In this newest experiment, a subscriber will not be charged if they use Netflix in the account holder’s “home” – the actual address where the account is registered. However, any long-term use outside of that area will necessitate the purchase of an additional account.
The announcement of this latest pricing experiment sparked outrage, particularly among users in Argentina, which has the world’s fourth-highest household penetration rate for Netflix, trailing only the United States, Canada, and Australia, with more than 4.5 million subscribers as of 2020, according to Comparitech, a consumer tech research platform. Argentine internet users were the most vocal, with anti-Netflix jokes, hashtags, and messages going popular throughout social media. Many vowed to boycott Netflix by using the hashtag #ChauNetflix (#ByeNetflix), a play on the platform’s local #CheNetflix promotional campaign on Twitter.
Though the corporation has long known that its customers/ subscribers share netflix passwords, it did nothing about it until earlier this year, when it recorded its first year-over-year fall in subscribers.
Executives believed at the time that 100 million households were streaming without paying.
The streaming service said last week that its $6.99 per month ad-supported tier, named Basic, will be available November 3rd onwards in the United States, Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, and the United Kingdom. Netflix is collaborating with Microsoft to show advertising to users, which will run between 15 and 30 seconds. Due to licensing constraints, this new tier does not provide customers access to Netflix’s entire collection. Basic subscribers are also unable to download anything and can only view material in HD. The company’s ad-supported tier will be available before Disney Plus’, which is expected to launch on December 8th.
Netflix cannot afford to overlook the issue in the face of increasing competition in streaming services. It is concentrating on gaining new members and increasing revenue from existing subscribers.
As competitors like as Disney, Warner Bros. Discovery, Paramount, and NBC expand their content libraries and subscriber bases, Netflix is convinced that its financial model will outperform them. “It’s hard to build a large and profitable streaming business — our best estimate is that all of these competitors are losing money on streaming, with aggregate annual direct operating losses this year alone that could be well in excess of $10 billion, compared with our +$5-$6 billion of annual operating profit.”
According to quarterly earnings reported Tuesday, the business attracted 2.4 million members in the third quarter that ended in September, which was more than projected.
It still added fewer customers than it did a year ago, when it attracted 4.4 million new members.
Paid Netflix password sharing or not? Netflix aims to attract 4.5 million new subscribers in the fourth quarter, down from 8.3 million new subscribers in the previous year.
What are your thoughts on this? Would you still share your Netflix password?
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